TSX-V: NZ OTCQX: NZERF

Producing, exploring and developing oil and natural gas prospects on New Zealand’s North Island

All of New Zealand’s oil and natural gas production comes from the Basin, with extensive infrastructure and a well-established service industry to support expanding development and production. The basin currently produces approximately 460 mmcf/day of liquids-rich natural gas and 55,000 bbl/day of light, high-quality oil TARANAKI BASIN that sells at Brent pricing.

MAJOR TECTONIC FEATURES, SIGNIFICANT OIL & GAS FIELDS The Taranaki Basin covers approximately 100,000 km2 both onshore and offshore New Zealand’s North Island. The first well was drilled in 1865 with production since the early 1900s, and there have been many significant oil and gas discoveries since 1950, both onshore and offshore. The region is structurally dominated, with faults acting as conduits for oil migration. NZEC controls more than 395 km2 in the main production fairway. With less than 500 wells drilled to date, the region offers extraordinary opportunities for further exploration and development.

MULTI-ZONE POTENTIAL

The Taranaki Basin sediments extend from shallow burial at 200 metres to the deep basement at more than 6,000 metres. Hydrocarbon source rocks are likely deeply buried Paleocene and Cretaceous coaly rocks and shales. Drilling targets are primarily sandstones with some carbonates, with six horizons dominating to date: the Kapuni sandstones, which tend to yield liquid-rich natural gas; the Tikorangi limestones and Tariki sands, which yield light oil and liquid-rich natural gas; and the shallower , Mt. Messenger and Moki sandstones, which tend to produce light oil and natural gas. NZEC’s exploration efforts to date have focused on the Mt. Messenger formation at a depth of approximately 2,000 metres. Proven Basin — Focused Development — Strategic Acquisition

Drill-proven basin NZEC controls 395 net km2 across five permits in the main production trend of the Taranaki Basin. The region has extensive infrastructure and a well- established oil field service industry to support oil and gas production from 18 fields.

New Zealand provides the ideal backdrop for oil and gas exploration, with a competitive tax and royalty system, straightforward permitting and regulations, Brent oil pricing, political and economic stability, and a climate that allows for year-round exploration.

NZEC’s net share of reserves and resources across its permits is estimated at 1,649,000 boe of 2P reserves, 580,000 boe of contingent resources and 88,312,000 boe of prospective conventional resources (9% recovery).1

NZEC has the benefit of an in-house proprietary database containing 15 years of geological, geophysical and well data across the Taranaki Basin. More than 6,835 km2 of 3D seismic and 73,364 line km of 2D seismic gives NZEC’s team great insight into TARANAKI BASIN SEISMIC COVERAGE the permits’ geology and prospectivity, and reduces drilling risk.

Interpretation of 3D seismic data continues to expand NZEC’s inventory of drilling leads, including some significant new targets in the deeper formations. NZEC’s team recently combined and reprocessed five separate 3D seismic surveys covering 552 km2 in the main Taranaki fairway, which provides seamless data over a substantial portion of NZEC’s onshore permits.

REGIONAL CROSS SECTION THROUGH KAPUNI FIELD – TARATA THRUST ZONE

1 Reserve and resource estimates prepared by Deloitte LLP (AJM Deloitte). Development plan • Continue to optimize oil production from existing wells • Reactivate oil production from existing wells, and recomplete existing wells in shallower formations • Drill new wells to Mt. Messenger and Tikorangi formations

Achievements to date • Large onshore exploration land package on New Zealand’s North Island • Successfully acquired strategic upstream and midstream assets • Producing light ~40o API oil from 12 wells • Experienced team with New Zealand exploration and operations expertise • Strategic partnership with L&M Energy • Cooperation Agreement with Ngati Ruanui iwi

NZEC’s permits are accessible by paved roads and central to a network of oil and gas pipelines.

TARANAKI BASIN INFRASTRUCTURE Strategic acquisition In October 2013, NZEC acquired a 50% interest in strategic upstream and midstream assets in the Taranaki Basin, in partnership with L&M Energy. The acquisition increased NZEC’s 2P reserves by 150%, significantly increased NZEC’s production just a month after closing, and brought additional exploration opportunities and a full-cycle production facility to NZEC’s portfolio. • Upstream assests (100% basis) – Three petroleum mining licenses – 93 km2 3D seismic, 585 km 2D seismic, log data from 27 wells – Near-term, low-cost production potential – Seven Tikorangi wells reactivated and producing oil using existing gas lift system – Additional existing wells offer recompletion potential uphole in shallower formations – New exploration targets in five drill-proven formations – Gathering pipelines in place to deliver production to Waihapa Production Station, and an oil pipeline from the production station to the Tank Farm and • Midstream assests – Full-cycle production facility, central to NZEC’s inventory of exploration prospects – Open-access facility → business opportunities – Full-cycle gathering and sales infrastructure – Capacity for 45 mmcf/d, 25,000 bbl/d Experienced team, focused on growth

Production and development wells NZEC’s wells are producing light, high-quality ~40o API crude and liquids-rich natural gas from the Mt. Messenger and Tikorangi formations. Oil is trucked approximately 45km on paved roads to the Shell-operated Omata Tank Farm in New Plymouth, where it is sold at Brent crude pricing.

WELL NAME PERMIT FORMATION STATUS AT JULY 2 2014

Producing Wells Copper Moki-1 Eltham Mt. Messenger Producing since Dec 2011 Copper Moki-2 Eltham Mt. Messenger Producing since Apr 2012 Waitapu-2 Eltham Mt. Messenger Produced Dec 2012-May 2013, resumed Mar 2014 Ngaere-1 TWN Tikorangi Oil production reactivated Nov 2013 Ngaere-2A TWN Tikorangi Oil production reactivated Nov 2013 Ngaere-3 TWN Tikorangi Oil production reactivated Nov 2013 Waihapa-H1 TWN Tikorangi Oil production reactivated Nov 2013 Waihapa-6A TWN Tikorangi Oil production reactivated Nov 2013 Waihapa-8 TWN Tikorangi Commenced oil production Mar 2014 Waihapa-2 TWN Mt. Messenger Commenced oil production Mar 2014 Toko-2B TWN Tikorangi Oil production reactivated Nov 2013

Potential Near-term Additions to Production Copper Moki-3 Eltham Mt. Messenger Producing since Jul 2012, shut-in for new pump install Waihapa-1B TWN Tikorangi/Mt. M Tikorangi reactivation or Mt. M uphole completion Technical and management expertise NZEC has recruited an experienced team with New Zealand sedimentary basin knowledge and a wide range of oil and gas industry expertise. John Proust, Chief Executive Officer Mike Oakes, General Manager Operations Founder and principal shareholder of numerous successful public More than 30 years of oil and gas experience overseeing design, and private companies focused in the resource sector. Expert in staffing and operations of both onshore and offshore oil and gas corporate financing and corporate governance. fields and production facilities. David Robinson, Director & CEO New Zealand Business Dan MacDonald, Drilling Manager Oil and gas professional with extensive commercial experience Mechanical engineer with an MBA and more than 30 years of oil with Shell New Zealand, and industry experience as CEO of the and gas drilling experience. Petroleum Exploration & Production Association of New Zealand. Stewart Angelo, Engineering and Maintenance Manager Derek Gardiner, Chief Financial Officer More than 25 years managing oil and gas midstream assets. Chartered Accountant and Chartered Corporate Secretary with more than 25 years of oil and gas experience, most recently as In-country Technical Team Commercial and Finance Manager for Origin Energy. A team of geologists, geophysicists and logistics experts oversee the technical review, exploration and development activities, Gerrie van der Westhuizen, Vice President Finance permitting and community engagement at NZEC’s properties. Chartered Accountant with expertise in financial reporting and controls, treasury management and tax compliance.

CONTACT INFORMATION Corporate Head Office Technical Office Operational Office Suite 1680, 200 Burrard St L2, 86-96 Victoria St L2, 119-125 Devon St East Vancouver, BC Wellington New Plymouth TSX-V: NZ Canada V6C 3L6 New Zealand 6011 New Zealand 4310 OTCQX: NZERF Tel: +1 604 630 8997 Tel: +64 4 471 1464 Tel: +64 6 757 4470 NA TF: 1 855 630 8997 NZ TF: 0800 469 363 NZ TF: 0800 469 363 Rhylin Bailie, Vice President Communications & Investor Relations Email: [email protected] Website: www.NewZealandEnergy.com